Cyclone Inc. reported the following figures from its financial statements for the years 2013 through 2015: $$\begin{array}{l}
&\underline { 2015 }& \underline { 2014 } & \underline { 2013 }\
\text { Net revenues } & \$ 717,422 & \$ 1,110,178 & \$ 591,786 \
\text { Gross profit } & 560,421 & 960,434 & 498,605 \
\text { Net income (net loss) } & ( 92,788 ) & 70,776 & 47,811 \
\text { Cash flow from operations } & 106,850 & 509,707 & 204,496 \
\text { Accounts receivable } & 68,648 & 90,561 & 56,454
\end{array}$$ Required:
A. Calculate the accounts receivable turnover for 2015 and 2014.
B. Calculate the average collection period for 2015 and 2014.

Question

Cyclone Inc. reported the following figures from its financial statements for the years 2013 through 2015: $$\begin{array}{l}
&\underline { 2015 }& \underline { 2014 } & \underline { 2013 }\
\text { Net revenues } & \$ 717,422 & \$ 1,110,178 & \$ 591,786 \
\text { Gross profit } & 560,421 & 960,434 & 498,605 \
\text { Net income (net loss) } & ( 92,788 ) & 70,776 & 47,811 \
\text { Cash flow from operations } & 106,850 & 509,707 & 204,496 \
\text { Accounts receivable } & 68,648 & 90,561 & 56,454
\end{array}$$ Required: 
A. Calculate the accounts receivable turnover for 2015 and 2014.
B. Calculate the average collection period for 2015 and 2014.

Quizplus · Accepted Answer

The Answer of Cyclone Inc. reported the following figures from its financial statements for the years 2013 through 2015: $$\begin{array}{l}
&\underline { 2015 }& \underline { 2014 } & \underline { 2013 }\
\text { Net revenues } & \$ 717,422 & \$ 1,110,178 & \$ 591,786 \
\text { Gross profit } & 560,421 & 960,434 & 498,605 \
\text { Net income (net loss) } & ( 92,788 ) & 70,776 & 47,811 \
\text { Cash flow from operations } & 106,850 & 509,707 & 204,496 \
\text { Accounts receivable } & 68,648 & 90,561 & 56,454
\end{array}$$ Required: 
A. Calculate the accounts receivable turnover for 2015 and 2014.
B. Calculate the average collection period for 2015 and 2014.

Cyclone Inc Required: A

Cyclone Inc Required:
A